Freeland: A Social Anticipation Part 22

At the same time, I do not deny that the wealthy cla.s.ses, particularly where the bringing up of children is exceedingly costly, do to some extent indulge in objectionable preventive practices, which, however, are said to be not altogether unknown in other countries.

ALBERT MOLNaR (_Centre_): The just mentioned fable of the two-children system is also prevalent among certain races living in Hungary, particularly among the Germans of Transylvania and among the inhabitants of certain Magyar districts on the Theiss. The truth here also is, that--apart, of course, from a few exceptions--the cause of the small increase in population must be sought in a lower degree of fecundity, which fecundity--and I would particularly emphasise this--everywhere in Hungary bears an inverse proportion to the prosperity of the people. The slaves of the mountainous north, who live in the deepest poverty, and the Roumanians of Transylvania, who vegetate in a like miserable condition, are all very prolific. Notwithstanding centuries of continuous absorption by the neighbouring German and Magyar elements, these races still multiply faster than the Germans and the Magyars. The Germans, living in more comfortable circ.u.mstances, and the few Magyars of the northern palatinate, are far less prolific, yet they multiply with tolerable rapidity. The Germans and Magyars of the plains, in possession of considerable wealth, are almost stationary, as are the already mentioned Saxons of Transylvania.

ROBERT MURCHISON (_Right_): In the second place, we would ask whether, contrary to the former a.s.sumption that man in his character of natural organism was subject to a universal law of nature imposing no check upon increase in numbers but that of deficiency of food--we would ask whether, on the contrary, the power acquired by man over other creatures does not const.i.tute him an exception to that now correctly stated law of nature which provides that an equilibrium between fecundity and death-rate shall automatically establish itself before a lack of food is experienced. Our misgiving is strengthened by the fact that among other animals, as a rule, it is not so much the change that occurs in the fecundity of the species, as that which occurs in the relation of the species to external foes, that restores the equilibrium when the death-rate has been altered by any cause.

Let us a.s.sume, for example, the herrings have lost a very dangerous foe--say that man, for some reason or other, has ceased to catch them--it is probable that their indefinite increase will not in the first instance be checked by a change in their fecundity, but an actual large increase in the number of the herrings will most likely lead to such an increase in the number and activity of their other natural foes that an equilibrium will again be brought about by that means.

Man, as lord of the creation, especially civilised man, has generally no other foe but himself to fear. Here, then, when the death-rate happens to be diminished by the disappearance of evils which he had brought upon himself, the equilibrium could be restored _only_ by a diminution of fecundity; here it would be as if nature was prevented from employing that other expedient which, in the world of lower animals, she, as a rule, resorts to at once, the increase of the death-rate by new dangers. I admit that several facts mentioned by the last speaker belonging to the Freeland government show that nature would find this, her only remaining expedient--the spontaneous diminution of fecundity--quite sufficient. It cannot be denied that the number of births decreases with increasing prosperity; but is it certain that this will take place to a sufficient extent permanently and radically to avert any danger whatever of over-population? For, apart from very rare exceptions which tire too insignificant to make a rule in such an important matter, the births have everywhere a little exceeded the deaths, though the latter have hitherto been everywhere unnaturally increased by misery, crime, and unwholesome habits of life; and if in future it remains the rule that the births preponderate, let us say to only a very small extent, then eventually, though not perhaps for many thousands of years, over-population must occur, for the lack of any external check.

In order permanently to prevent this, there must be established sooner or later an absolute equilibrium between births and deaths. Can we really depend upon nature spontaneously to guarantee us this? Is it absolutely certain that nature will, as it were, say to man: 'My child, you have by the exercise of your reason emanc.i.p.ated yourself from my control in many points. You have made ineffectual and inapplicable all but one of those means by which I protected your animal kindred from excessive increase, and the one means you have left untouched is just that which I have been accustomed to employ only in extreme cases. Do not look to me alone to furnish you with effectual protection against that evil, but make use of your reason for that purpose--_for that also is my gift_.'

The supposition that, in this matter, nature really indicates that man is to exercise some kind of self-help gains weight when one recalls the course of human evolution. Our Freeland friends have very appositely and strikingly shown us how the men of the two former epochs of civilisation treated each other, first as beasts for slaughter and then as beasts of burden. And what was it but want that drove them to both of these courses?

Is not the conviction forced upon us that our ancestors were compelled at first to eat each other, and, when they refrained from that, to decimate each other, simply because they had become too strong to be saved from over-population by the interposition of nature? In the first epoch of civilisation man protected himself against a scarcity of food by slaying and, driven by hunger, straightway devouring, his compet.i.tor at nature's table. What happened in the second epoch of civilisation was essentially the same: men were consumed slowly, by piecemeal, and a check put upon their increase by killing them and their offspring slowly through the pains and miseries of servitude. In short, since man has learnt to use his reason he has ceased to be a purely natural creature, his own will has become partly responsible for his fate; and it seems to me that in the population question of the future he will not be left to the operation of nature alone, but must learn how to help himself.

LOTHAR MONTFORT (_Freeland_): That man, by the exercise of his reason, has made himself king of nature, and has no special need to fear any foe but himself, is certainly true; and it is just as true that he can and ought to use this reason of his in all the relations of the struggle for existence.

Moreover, I do not doubt that if it were really true, as the previous speaker apprehended, that man has become too strong for nature to save him from over-population in the same way in which she saved his lower fellow-creatures, then man would be perfectly able to solve this problem by a right use of his own reason. Should he actually be threatened by over-population after he had left off persecuting his fellow men, recourse could and would be had to the voluntary restriction of the number of children.

In the first place, it is not too much to expect that physiology would be able to supply us with means which, while they were effectual, would not be injurious to health or obnoxious to the aesthetic sentiment, and would involve the exercise of no ascetic continence; though all the means. .h.i.therto offered from different quarters, and here and there actually employed, fail to meet at least one or more of these conditions. In the second place, it is certain that public opinion would be in favour of prevention as soon as prevention was really demanded in the public interest. That the declamations of the apostles of prevention, powerful as they have been, have not succeeded in winning over the sympathies of the people is due to the fact that those apostles have been demanding what was altogether superfluous. There has. .h.i.therto been, and there is now, no over-population; the working cla.s.ses would not be in the least benefited by refraining from the begetting of children; hence, prevention would in truth have been nothing but a kind of offering up of children to the Moloch of exploitational prejudice. The popular instinct has not allowed itself to be deceived, and moral views are determined by the moral instincts, not by theories. On the other hand, if there were a real threat of over-population, in whatever form, the restriction of the number of births would then be a matter of general interest, and the public views upon prevention would necessarily change. Should such a change occur, it would be quite within the power of society to regulate the growth of population according to the needs of the time. It may safely be a.s.sumed that no interference on the part of the authorities will be called for; the exercise of compulsion by the authorities is absolutely foreign to the free society, and cannot be taken into consideration at all. The modern opinion concerning the population question, the opinion that is gradually acquiring the force of a moral principle--viz. that it is reprehensible to beget a large number of children--must prove itself to be sufficiently powerful for the purpose, it being taken for granted, of course, that means of prevention were available which were absolutely trustworthy, and did not sin against the aesthetic sentiment. But if this did not suffice, the incentive to restriction would be furnished by the increased cost of bringing up children, or by some other circ.u.mstance.

But it is really superfluous to go into these considerations, for in this matter nature has no need whatever of the conscious a.s.sistance of man. Man is, in this respect, no exception; what he expects from nature has been given in the same degree to other creatures, and all that is essential has already been furnished to him.

As to the first point, I need merely remark that, though man is the king of animals, he is in no way different from all the others as to the point under consideration. There are animals which, when the danger from one foe diminishes, may be exposed to increased danger from other foes, and in the case of such, therefore, as the previous speaker quite correctly said, the restoration of the disturbed equilibrium does not necessarily presuppose a diminution of fecundity. But there are other animals which, in this matter, are exactly in the same position as man. They have no foes at all whom they need fear, and a change of death-rate among them can therefore be compensated for only by a corresponding change in the power of propagation.

The great beasts of prey of the desert and the sea, as well as many other animals, belong to this category. What foe prevents lions and tigers, sperm-whales, and sharks from multiplying until they reach the limit of their food supply? Does man prevent them? If anyone is really in doubt as to this, I would ask who prevented them in those unnumbered thousands of years in which man was not able to vie with them, or did not yet exist? But they have never--as species--suffered from lack of food; consequently nature must have furnished to them exactly what _we_ expect from her.

In fact, as I have said, she has already furnished us with it. For it is not correct that, in the earlier epochs of civilisation, man a.s.sisted nature in maintaining the requisite equilibrium between the death-rate and the fecundity of his species. It is true that men a.s.sisted in increasing their own death-rate by slaying each other, and by torturing each other to death; but they did not in this way restore an equilibrium that had been disturbed by too great fecundity or too low a mortality; on the contrary, they disturbed an equilibrium already established by nature, and compelled nature to make good by increased fecundity the losses occasioned by the brutal interference of man. The previous speaker is in error when he ascribes the rise of anthropophagy in the first compet.i.tive struggles in human society to hunger, to the limitation of the food supply, by which the savages were driven to kill, and eventually to eat, their fellow savages.

Whether the opponent was killed or not made no material difference in the relations between these two-legged beasts of prey and their food supply.

Nature herself took care that they never increased to the actual limit of their food supply; if they had been ten times more numerous they would have found the food in their woods to be neither more nor less abundant. They opposed and murdered each other out of ill-will and hatred, impelled not by actual want but by the claim which each one made to everything (without knowing how to be mutually helpful in acquiring what all longed for, as is the case under the _regime_ of economic justice). Whether there were many or few of them is a matter of indifference. Put two tribes of ten men each upon a given piece of land, and they will persecute each other as fiercely as if each tribe consisted of thousands. It is true that the popular imagination generally a.s.sociates cannibalism with a lack of food or of flesh; but this mistake is possible only because the doctrine of exploitation fills the minds of its adherents with the hallucination of over-population. Certainly cannibals do not possess abundance in the sense in which civilised men do, but this is because they are savages who have not, or have scarcely, risen out of the first stage of human development.

To suppose that they were driven into cannibalism by over-population and the lack of food, is to exhibit a singular carelessness in reasoning. For it is never the hungry who indulge in human flesh, but those who have plenty, the rich; human flesh is not an article of food to the cannibal, but a dainty morsel, and this horrible taste is always a secondary phenomenon; the cannibal acquires a taste for a practice which originally sprang from nothing but his hatred of his enemy.

Again, neither is the action of the exploiter induced by a diminution of the food supply, nor would such a diminution prevent future over-population. Men resort to mutual oppression, not because food is scarcer, but because it is more abundant, and more easily obtainable than before; and the misery which is thereby occasioned to the oppressed does not diminish but increases their number. It is true that misery at the same time decimates those unfortunates whose fecundity it continually increases; but experience shows that the latter process exceeds the former, otherwise the population could not increase the more rapidly the more proletarian the condition of the people became, and become the more stationary the higher the relative prosperity of the people rose.

That, apart from insignificant exceptions, an actually stationary condition has never been known is easily explained from the fact that actual prosperity, real social well-being, has never yet been attained. When once this becomes an accomplished fact the perfect equilibrium will not be long in establishing itself. The same applies to every part of nature in virtue of a great law that dominates all living creatures; and there is nothing to justify the a.s.sumption that man alone among all his fellow-creatures is _not_ under the domination of that law.

(_End of Fourth Day's Debate_)

CHAPTER XXVII

FIFTH DAY

The fourth point in the Agenda was: _Is it possible to introduce the inst.i.tutions of economic justice everywhere without prejudice to inherited rights and vested interests; and, if possible, what are the proper means of doing this?_

ERNST WOLMUT (_belonging to no party_) opened the debate: I do not think it necessary to lay stress upon the fact that the discussion of the subject now before us cannot and ought not materially to influence our convictions.

Whether it be everywhere possible or not to protect vested interests will hinder no one from adopting the principle of economic justice, and that at once and with all possible energy. We are not likely to be prevented from according a full share of justice to the immense majority of our working fellow-men by a fear lest the exploiting cla.s.ses should suffer, any more than the promoters of the railroads were stayed in their work by the knowledge that carriers or the innkeepers on the old highways would suffer.

It is, however, both necessary and useful to state the case clearly, and as speedily as possible to show to those who are threatened with inevitable loss what will be the extent of the sacrifice they will have to make. For I take it to be a matter of course that such a sacrifice is inevitable. No one suffered anything through the establishment of the Freeland commonwealth; but this was because there were here no inherited rights or vested interests to be interfered with. There were no landlords, no capitalists, no employers to be reckoned with. It is different with us in the Old World. What is to be done with our wealthy cla.s.ses, and how shall we settle all the questions concerning the land, the capital, and the labour over which the wealthy now have complete control? Will it not be humane, and therefore also prudent, to make some compensation to those who will be deprived of their possessions? Will not the new order work better if this small sacrifice is made, and embittered foes are thereby converted into grateful friends?

ALONSO CAMPEADOR (_Extreme Left_): I would earnestly warn you against such pusillanimous sentimentality, which would not win over the foes of the new order, but would only supply them with the means of attacking it, or shall we say allow them to retain those means. If we would exercise justice towards them, we should give to them, as to all other men, an opportunity of making a profitable use of their powers. They cannot or will not labour.

They are accustomed to take their ease while others labour for them. Does this const.i.tute a just claim to exceptional treatment? But it will be objected that they ask for only what belongs to them, nay, only a part of what belongs to them. Very well. But what right have they to this so-called property? Have they cultivated the ground to which they lay claim? Is the capital which they use the fruit of _their_ labour? Does the human labour-force which carries on their undertakings belong to them? No; no one has a natural right to more than the produce of his own labour; and since in the new order of things this principle deprives no one of anything, but, on the contrary, leads to the greatest possible degree of productiveness, no one has any ground for complaint--that is to say, no one who is content with what is his own and does not covet what rightly belongs to some one else. To acknowledge the claims of those who covet what is not theirs would be like acknowledging the claims of the robber or thief to the property he has stolen.

It will be said that owners possess what they have _bona fide_; their claim is based upon laws. .h.i.therto universally respected. Right. Therefore we do not _punish_ these _bona fide_ possessors; we simply take from them what they can no longer possess _bona fide_. But the owners have paid the full value for what they must now give up: why should they lose their purchase-money, seeing that the purchase was authorised by the law then in force? Is the new law to have a retrospective force? These are among the questions we hear. But no one need be staggered by these questions unless he pleases. For the purchase-money rightly belonged to the possessor of it as little as the thing purchased; he who buys stolen goods with stolen money has no claim for compensation. If he acts in good faith he is not obnoxious to punishment--but ent.i.tled to compensation?

Yet--and this is the last triumph of the faint-hearted--the purchase-money, that is, the capital sunk in land or in any business, can be legally the property of the possessor even in our sense of the term. The possessor may have produced it by his own labour and saved it: is he not in that case ent.i.tled to compensation? Yes, certainly; in this case, to refuse compensation for such capital would be robbery; but is not the establishment of economic justice, which gives a right to the produce of any kind of future labour, a fully adequate compensation for that capital which has really been produced by the possessor's own labour? Consider how poorly a man's own labour was remunerated under the exploiting system of industry, what capital could be saved out of what was really one's own labour, and you will not then say that a real worker who possessed any such savings will not find a sufficient compensation in the ten-fold or hundred-fold increase of the produce of his labour. But perhaps a difficulty is found in the possibility that this small capitalist might no longer be capable of work? Granted; and provision is made for this in the new order of things. The honest worker receives his maintenance allowance when his strength has left him; even he will have no occasion to sigh for what he had saved in the exploiting times of the past. To these maintenance allowances I refer also those other exploiters whose habits have robbed them of both desire and ability to work. The free community of the future will be magnanimous enough not to let them suffer want; even they have, as our fellow-men, this claim upon the new order; but any right beyond this I deny.

STANISLAUS LLOWSKI (_Freeland_): We in Freeland take a different standpoint. The exploiting world could, without being false to itself, forcibly override acquired rights in order to carry out what might be the order of the day; it could--and has almost always done so--carry into force any new law based upon the sword, without troubling itself about the claims of the vanquished; it could do all this because force and oppression were its proper foundation. Its motto was, 'Mine is what I can take and keep'; therefore he who took what another no longer had the power to keep acted in perfect accordance with his right, whether he could base his claim upon the fortune of war or upon a parliamentary majority. If we recognised this ancient right, matters would be very simple: we have become the stronger and can take what we please. The hypocrisy of the modern so-called international law, which has a horror of brutal confiscations, need not stand in our way any more than it has ever stood in the way of anyone who had power. Conquerors no longer deprived the conquered of their land, they no longer plundered or made men their slaves; but in truth, it was only in appearance that these practices had ceased: it was only the form, not the essence of the thing, that had changed. The victor retained his right of legislating for the vanquished; and the earnings of the vanquished were more effectually than ever transferred to the pockets of the victors in the forms of all kinds of taxes, of restrictions, and rights of sovereignty.

'Property' was 'sacred,' not even that of the subjugated was touched; merely the fruits of property were taken by the strong. This we, too, could do. Take the property from its owners? How brutal; what a mockery of the sacred rights of property! But to raise the taxes until they swallowed up the whole of the property--who in the exploiting world would be able to say _that_ was contrary to justice? Yet we declare it to be so, for we recognise no right to treat the minority of possessors differently from the minority of workers; and as in our eyes property is sacred, we must respect it when it belongs to the wealthy cla.s.ses as much as when it belongs to ourselves.

But--objects the member on the Left--the victorious majority make no claim of right of private property in the land and in the productive capital.

Certainly; but they do not possess anything which they will have to renounce in the future, while the minority does; hence to dispossess the possessors in favour of those who did not possess, in order that equality of right might prevail in future, would not be to treat both alike.

But--and this is the weightiest argument in the eyes of our friend--the minority is said to have at present no valid t.i.tle to their property; they owe it to exploitation, and we do not recognise this as a just t.i.tle; exploitation is robbery, and he who has stolen, though he did it in good faith, possesses no claim to compensation. This reasoning is also false.

Exploitation is robbery only in an economic, not in a juridical, sense; it was not merely _considered_ to be permissible--it _was_ so. The exploiter did not act illegally though in good faith; rather he acted legally when in his day he exploited; and acted legally not merely on the formal ground that the law, as it then existed, allowed him thus to act, but because he could not act otherwise. This appropriation of other men's earnings, which, in an economic sense, we are compelled, and rightly so, to call robbery, was--let us not forget that--the necessary condition of any really productive highly organised labour whatever, so long as the workers were not able to freely organise and discipline themselves. Economic robbery, the relation of master held by the few towards the many, const.i.tuted an effective economic service that had the strongest right to claim the profit of other men's labour, which was in fact rendered profitable by it.

Subsequently to confiscate the thus acquired compensation for the services rendered, because such services had become superfluous or indeed detrimental, would in truth be robbery, not merely in an economic sense, but in a legal sense--an offence against the principles of economic justice.

Then are those who have been exploiters to retain undiminished the fruit of their 'economic robbery'? Yes; but two things must be noted. In all ages it has been held to be the right of the community to dispossess owners of certain kinds of property without committing any offence against the sacredness of property, provided full compensation was offered to the owners. In the abolition of slavery, of serfdom, of certain burdens on the land, and the like, no one has ever found anything that was reprehensible, provided the owner of the slaves or of the land was compensated to the full value of the property taken from him. In the second place, it is to be noted that the community is bound to guarantee to the owners their property, but not the profit which has. .h.i.therto been obtained from it.

If you apply these two principles to the acquired rights which the Free Society found existing, you will find that, while the land is taken from the landowners, the value of it must be paid; the Society has nothing to do with movable capital, and the same holds good of the profit which the employers have hitherto drawn from their relation to the workers. The Society can also claim the right of obtaining possession of the movable productive property, so far as it may appear to be to the public interest to do this. Such an interest does not here come in question, for, apart from the fact that movable means of production can be created in any quant.i.ty that is required, there is no reason to fear that the owners will hold back theirs when they find what is both the only and the absolutely best employment for it in dealing with the a.s.sociated workers. But, in the future, capitalists will not receive interest for their property, or, if they do, it will be only temporarily. There is as little occasion as there is right to forbid the receiving of interest; but, as every borrower will be able to get capital without interest, the paying of interest will cease automatically. Just as little can or need the Free Society forbid the former employers to hire workers to labour for them for stipulated wages; such workers will no longer be found.

ALI BEN SAFI (_Right_): Where is the Free Commonwealth to obtain the means to purchase all the land, and at the same time to furnish the workers with business capital? It is possible that some rich countries may be able to accomplish this by straining all their resources; but how could we in Persia find the 125,000,000, at which the fixed property was estimated at the last a.s.sessment, to say nothing of the hitherto totally lacking business capital?

FRANcOIS RENAUD (_Right_): On the contrary, I fear that the--from a legal standpoint certainly una.s.sailable--justice to the former owners will occasion the greatest difficulties to just the richest countries. Their greater means involve the heavier claims upon those means; for in proportion as those countries are really richer will the value of the land be higher, and the workers, because more skilful in carrying on highly developed capitalistic methods of industry, will at once require larger amounts of business capital, which the community will have to furnish. So far, then, the greater strength and the heavier burden balance each other.

But to this it must be added that in the more advanced countries the amount of mobile capital requiring compensation is far greater than that of poor countries. As interest is to cease, all these numberless invested milliards then bearing interest will be withdrawn: whence will the means be suddenly obtained promptly to meet all these calls?

CLARK (_Freeland_): The last two speakers entertain unnecessary fears. The sums required to get possession of the land, to pay back the circulating capital, and to furnish the workers with more abundant means for carrying on business, are certainly enormous--are at any rate larger than the material advance of any country whatever can even approximately supply quickly enough to place the country in a position to bear such burdens in their full extent. Certainly, if the transition to economic justice were followed immediately by its full results--if, for example, such transition lifted any country at once to that degree of wealth which we enjoy in Freeland--comparatively little difficulty would be experienced in responding to the heavy demands that would be made; but this condition would not be reached for years; the tasks you must undertake would be more than you could perform, if you had at once to discharge the whole of your responsibilities. But you have no reason whatever to fear this. Simply because interest will cease will neither landowner nor capitalist have any motive for insisting upon immediate payment, but will be quite content to accept payment in such instalments as shall suit the convenience of the community or the private debtors--should there be any such--and which could be easily accommodated to the interests of those who were ent.i.tled to receive the payment. When it is considered that the latter would be compelled either to let their capital lie idle or to consume it, it will appear evident that, if only the slightest advantage were offered them, they would prefer to receive their property in instalments, so far as they did not actually want to use it themselves.

You have quite as little reason to fear the demand which will be made for supplying the workers with the means of carrying on business. If your exploited ma.s.ses already possessed the ability to make use of all those highly developed capitalistic implements of industry which we employ in Freeland, then certainly the Old World would have to renounce any attempt even approximately to meet at once the enormous demand for capital which would be made upon it. In such a case the milliard and a-half of souls who would pa.s.s over to the new order of things would require two billions of pounds; but the two milliards of men will not require these two billions, because they would not know what to do with the enormous produce of the labour called forth by such means of production. To dispose of so much produce it would be necessary for every family in the five divisions of the globe to possess the art of consuming a minimum of from 600 to 700 per year, as our Freeland families do; and, believe us, dear friends, your ma.s.ses, just escaped from the servitude of many thousands of years, at present entirely lack this art. You will not produce more than can be consumed. You have not been able to do so yet, and will certainly not be able to do it when the consumption of the workers is able to supply the only reason for production. The extent and the intensity of production have been and remain the determinating factors in the extent and kind of the means of production. You will at any time be able to create what you are able to make use of; and if here and there the demand grow somewhat more rapidly than can be conveniently met out of the surplus acquired by the continually increasing productiveness of labour, you must for a time be content to suffer inconvenience--that is, you must temporarily forego the gratification of some of your newly acquired wants in order the more rapidly to develop your labour in the future.

For the rest, I can only repeat that the Freeland commonwealth will always be prepared, in its own interests, to place its means at your disposal, so far as they will go. We calculate that your wealth--that is, looking at the subject from the standpoint of _our_ material interests, your ability to purchase those commodities which we have special natural facilities for producing, and your power of producing those commodities which we can take in exchange for ours with the greatest advantage to you--will, in the course of the next two or three years, at least double, and probably treble and quadruple. From this we promise ourselves a yearly increase of about a milliard pounds sterling in our Freeland income. We have determined to apply this increase for a time, not to the extension of our consumption and of our own investments, but to place it at your disposal, as we have already done the unemployed surplus of our insurance reserve fund, and to continue to do this as long as it may seem necessary. [Tremendous applause.]

The PRESIDENT: I believe I am expressing the wish of the a.s.sembly when I ask William Stuart, the special representative of the American Congress, who arrived at Eden Vale this morning, to state to us the proposals laid before the congress of his country by the committee entrusted with the drawing up of the scheme for adopting the _regime_ of economic equality of rights.

WILLIAM STUART: In the name of the representatives of the American people, I ask the kind attention of this distinguished a.s.sembly, and particularly of the representatives of Freeland who are present, to a series of legislative enactments which it is proposed to make for the purpose of carrying us--with the energy by which we are characterised, and, at the same time, without injury to existing interests--out of the economic conditions that have hitherto existed into those of economic equality of rights. Our government found themselves obliged to take this step because our nation is the first outside of Freeland--at least, so far as we are aware--which has pa.s.sed the stage of discussion, and is about immediately to take action and carry out the work. The inst.i.tutions of economic justice are no longer novelties; we can follow a well-proved precedent, the example of Freeland, and we intend to follow that example, with a few unessential modifications rendered necessary by the special characteristics of the American country and people. On the other hand, we lack experience; and as, notwithstanding our well-known 'go-ahead' habits, we would rather have advice before than after undertaking so important a task, I am sent to ask your opinion and report it to the American Congress before the recommendations of the committee have become law.

It is proposed to declare all the land in the United States to be ownerless, but to pay all the present owners the full a.s.sessed value. In order to meet the cases of those who may think they have not received a sufficient compensation, special commissions of duly qualified persons will be appointed for the hearing of all appeals, and the public opinion of the States is prepared to support these commissions in treating all claims with the utmost consideration. It is proposed to deal with buildings in the same way, with the proviso that dwelling-houses occupied by the owners may be excepted at the owners' wish. The purchase-money shall be paid forthwith or by instalments, according to the wish of the seller, with the proviso that for every year over which the payment of the instalment shall be extended a premium of one fifth per cent. shall be given, to be paid to the seller in the form of an additional instalment after the whole of the original purchase-money has been paid. The payment is not to extend over more than fifty years. Suppose a property be valued at ten thousand dollars; then the owner, if he wishes to have the whole sum at once, receives his ten thousand, with which he can do what he pleases; but if he prefers, for example, to receive it in ten yearly instalments of 1,000 dollars, he has a right to ten premiums of 20 dollars each, which will be paid to him in a lump sum of 200 dollars as an eleventh instalment. If he wishes the payment to be in fifty instalments of 200 dollars, then his premiums will amount to fifty times twenty dollars--that is, to 1,000 dollars--which will be paid in five further instalments of 200 dollars. The national debt is to be paid off in the same way.

The existing debit and credit relations of private individuals remain intact, except that the debtor shall have the right of immediate repayment of the borrowed capital, whatever may have been the terms originally agreed upon. As the commonwealth will be prepared to furnish capital for any kind of production whatever, the private debtor will be in a position to exercise the right above-mentioned; but, according to the proposal of the committee, the commonwealth shall, for the present, demand of its debtors the same premium which it guarantees to its creditors. The object of this regulation is obvious: it is to prevent the private creditors--in case no advantage accrues to them--from withdrawing their capital from business and locking it up. If those who needed capital had their needs at first supplied without cost, simply upon undertaking gradually to repay the borrowed capital, they would not be disposed to make any compensatory arrangement with their former creditors, whilst, should the committee's proposal be adopted, they would be willing to pay to those creditors the same premiums as they would have to pay to the commonwealth.

The opinions of the committee were at first divided as to the amount of the premiums to be guaranteed and demanded. A minority was in favour of fixing a maximum of one in a thousand for each year of delayed payment: they thought that would be sufficient to induce most of the capitalists to place in the hands of the commonwealth or of private producers the property which otherwise they must at once consume or allow to lie idle. Eventually, however, the minority came over to the view of the majority, who preferred to fix the maximum higher than was necessary, rather than by untimely parsimony expose the commonwealth to the danger of seeing the capital withdrawn which could be so profitably used in the equipment of production.

The voting was influenced by the consideration that we, as the first, outside of Freeland, among whom capital would receive no interest, must be prepared, if only temporarily, to stand against the disturbing influences of foreign capital. That such disturbing influences have not been felt in Freeland, though here no premium of any kind has ever been in force, whilst interest has been paid everywhere else in the world, was an example not applicable to our case, as we have not to decide--as you in Freeland have--what to do with capital which we do _not_ need, and which, after all conceivable demands on capital have been met, still remains disposable; but, on the other hand, we have to attract and to retain capital of which we have urgent need. But that the proposed one-fifth per cent. will suffice for this purpose we are able with certainty to infer from the double circ.u.mstance that, in the first place, the antic.i.p.ated adoption of this proposal, which naturally became known at once to our world of capitalists, has produced a decided tendency homewards of our capital invested abroad.

It is evident, therefore, that capitalists scarcely expect to get elsewhere more for large amounts of capital than we intend to offer. In the second place, the capitalistic transactions which have recently been concluded or are in contemplation show that our home capital is already changing hands at a rate of interest corresponding to our proposed premium. Anyone in the United States who to-day seeks for a loan gets readily what he wants at one-fifth per cent., particularly if he wishes to borrow for a long period.

Such seekers of capital among us at present are, of course, in most cases companies already formed or in process of formation.

Thanks to the fact that the election for the Const.i.tuent Congress has been the means of universally diffusing the intelligence that it was intended to act upon the principle of respecting most scrupulously all acquired rights, productive activity during the period of transition has suffered no disturbance, but has rather received a fresh impetus. The companies in process of formation compel the existing undertakers to make a considerable rise in wages in order to retain the labour requisite for the provisional carrying on of their concerns; and as this rise in wages has suddenly increased the demand for all kinds of production it has become still more the interest of the undertakers to guard against any interruption in their production. These two tendencies mutually strengthen each other to such a degree that at the present time the minimum wages exceed three dollars a day, and a feverish spirit of enterprise has taken possession of the whole business world. The machine industry, in particular, exhibits an activity that makes all former notions upon the subject appear ridiculous. The dread of over-production has become a myth, and since the undertakers can reckon upon finding very soon in the a.s.sociations willing purchasers of well-organised concerns, they do not refrain from making the fullest possible use of the last moments left of their private activity. Even the landlords find their advantage in this, for the value of land has naturally risen very materially in consequence of the rapidly grown demand for all kinds of the produce of land. In short, everything justifies us in antic.i.p.ating that the transition to the new order of things with us will take place not only easily and smoothly, but also in a way most gratifying to _all_ cla.s.ses of our people.

The PRESIDENT asked the a.s.sembly whether they would continue the debate on the fourth point on the Agenda, by at once discussing the message from the American Congress; or whether they would first receive the report which the Freeland commissioner in Russia had sent by a messenger who had just arrived in Eden Vale. As the congress decided to hear the report,

DEMETER NOVIKOF (messenger of the Freeland commissioner for Russia) said: When we, the commissioners appointed by the Freeland central government at the wish of the Russian people, arrived in Moscow, we found quiet--at least externally--so far restored that the parties which had been attacking each other with reckless fury had agreed to a provisional truce at the news of our arrival. Not merely the cannons and rifles, but even the guillotine and the gallows were at rest. Radoslajev, our plenipotentiary commissioner, called the chiefs of the parties together, induced them to lay down their weapons, to give up their prisoners, to dissolve the seven different parliaments, each one of which had been a.s.suming the authority of exclusive representative of the Russian people; and then, after he had furnished himself for the interim with a council of reliable men belonging to the different parties, he made arrangements for the election of a const.i.tuent a.s.sembly with all possible speed.